Super wealth concentration will cause collapse - Atheist Nexus2017-08-18T05:54:17Zhttp://atheistnexus.org/forum/topics/super-wealth-concentration-will-cause-collapse?groupUrl=politics-economics-and-religion&commentId=2182797%3AComment%3A2102962&groupId=2182797%3AGroup%3A1787843&feed=yes&xn_auth=noI agree - it's a sad state of…tag:atheistnexus.org,2012-11-17:2182797:Comment:21029622012-11-17T17:59:19.917ZSteph S.http://atheistnexus.org/profile/StephS
<p>I agree - it's a sad state of affairs.</p>
<p>I agree - it's a sad state of affairs.</p> Banks do have influence. Corp…tag:atheistnexus.org,2012-11-17:2182797:Comment:21031242012-11-17T17:58:56.567ZSteph S.http://atheistnexus.org/profile/StephS
<p>Banks do have influence. Corporations too. Big business is into everything.</p>
<p>Banks do have influence. Corporations too. Big business is into everything.</p> A systemic risk bank tax, wha…tag:atheistnexus.org,2012-11-15:2182797:Comment:21016862012-11-15T19:02:46.803ZRuth Anthony-Gardnerhttp://atheistnexus.org/profile/RuthAnthonyGardner
<p>A systemic risk bank tax, what an innovative solution to too big to fail!</p>
<blockquote><p>Like the impact of an elephant herd grazing on grassland, multinational banks shape the financial environment to an extent that far outweighs their small number. And like a contagious person on a transnational flight, when these giant, interconnected banks succumb to financial ills, they are uniquely positioned to infect wide swaths of the financial system.</p>
<p>Researchers from Princeton…</p>
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<p>A systemic risk bank tax, what an innovative solution to too big to fail!</p>
<blockquote><p>Like the impact of an elephant herd grazing on grassland, multinational banks shape the financial environment to an extent that far outweighs their small number. And like a contagious person on a transnational flight, when these giant, interconnected banks succumb to financial ills, they are uniquely positioned to infect wide swaths of the financial system.</p>
<p>Researchers from Princeton University, the Bank of England and the University of Oxford applied methods inspired by ecosystem stability and contagion models to banking meltdowns and found that <strong>large national and international banks wield an influence and potentially destructive power that far exceeds their actual size.</strong></p>
<p>"<strong>This would basically create a systemic-risk tax for larger more highly connected institutions and work to the advantage of smaller financial institutions</strong>," Sugihara said. "It is there in the small banks and thrifts that many publicly useful financial innovations arise."</p>
<p>The models the researchers created illustrate that <strong>such a policy is not only crucial,</strong> Sugihara said, <strong>but also potentially far-reaching and relatively simple to implement in comparison to existing, more complex regulations</strong>.</p>
<p>"This particular integration of network dynamics with confidence effects makes this model unique, and potentially both minimal and comprehensive," Sugihara said. "It calls attention to a general class of problem that has a long tradition in ecology but is only recently being taken seriously in central banking -- namely, the importance of evaluating risk by viewing banking as a 'whole' system." [emphasis mine]</p>
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<p><a target="_blank" href="http://images.sciencedaily.com/2012/11/121114134658.jpg"><img class="align-center" src="http://images.sciencedaily.com/2012/11/121114134658.jpg"/></a></p>
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